London open: Stocks rally despite conflicting tariff messages
By Michele Maatouk
Date: Monday 14 Apr 2025
(Sharecast News) - London stocks rose sharply in early trade on Monday, taking their cue from gains in Asia as investors mulled the latest twists and turns in Trump's tariff saga.
At 0822 BST, the FTSE 100 was up 1.6% at 8,093.98.
Sentiment got a boost after Trump said late on Friday that smartphones and computers were exempt from new tariffs.
In a post on Truth Social on Sunday, however, Trump wrote: "There was no Tariff 'exception'. These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff 'bucket.'"
He also said the administration was planning to launch an investigation into the semiconductor sector and the whole electronics supply chain.
Despite the conflicting messages, the tone in markets was upbeat.
Matt Britzman, senior equity analyst, Hargreaves Lansdown: "Just when it seemed the tariff chaos couldn't get any worse, tech investors have spent the weekend scrambling to make sense of a whirlwind of confusing - and at times contradictory - messages coming out of the White House. Despite the drama, European markets have taken an easing stance on US tech components as a positive in a broad-based rally this morning, with the FTSE 100 up 1.5% in early trading.
"This time, it's chips, smartphones, and other tech components taking centre stage. While there were early signs on Friday night that some broad exemptions might be in play, it turns out tariffs are still very much on the table. But here's the twist: despite the messy rollout, what's caught investors' attention is the news that these products won't be hit with the harsh China-specific tariffs. Instead, it looks like an existing 20% tariff will be applied - at least for now - while further decisions around how best to deal with this bucket of products go on in the background.
"The net effect is positive for tech, especially for giants like Apple, which could've seen their entire pricing strategy thrown into disarray under the proposed 145% China tariffs. Instead, this reprieve, and news that further tariffs will be a couple of months away, gives Apple time to build up its US inventory to cover the current iPhone sales cycle without needing knee-jerk price hikes. Decisions on pricing can then be made alongside the launch of its latest handset in September. It's still a bit chaotic, but this is a better outcome for the tech sector than when we closed on Friday and, as a result, US futures are trading higher - even as volatility spikes yet again."
In equity markets, Wood Group surged as it said that Dubai's Sidara has made a non-binding conditional takeover proposal valuing the company at 35p per share that it would be minded to recommend.
The proposal also includes a possible capital injection of $450m from Sidara and would require Wood to seek an extension of its existing committed debt facilities.
Wood Group said: "Work continues on a range of alternative refinancing options. However, having carefully considered the viability of these options together with its financial advisers, the board of Wood currently believes that the possible offer represents the better option for Wood's shareholders, creditors and other stakeholders.
"Accordingly, the board of Wood has indicated to Sidara that, should an offer be made on the terms set out above, it would be minded to recommend the offer to Wood's shareholders, subject to agreement of the full terms and conditions of the offer."
Elsewhere, medical products group Convatec shot to the top of the FTSE 100 as it said the sales outlook for InnovaMatrix has improved after an announcement by the US government late last week.
The Centers for Medicare & Medicaid Services on Friday postponed so-called local coverage determinations (LCDs) for certain products used to treat diabetic foot ulcers and venous leg ulcers, meaning that Medicare patients with those conditions will continue to benefit from access to InnovaMatrix.
As a result, the company lifted guidance for InnovaMatrix sales this year from $50m to $75m.
Market Movers
FTSE 100 (UKX) 8,093.98 1.63%
FTSE 250 (MCX) 18,740.25 1.22%
techMARK (TASX) 4,343.78 1.35%
FTSE 100 - Risers
Convatec Group (CTEC) 259.40p 4.77%
Smurfit Westrock (DI) (SWR) 3,133.00p 4.68%
Melrose Industries (MRO) 420.70p 3.88%
Barclays (BARC) 266.50p 3.31%
St James's Place (STJ) 848.40p 3.04%
JD Sports Fashion (JD.) 74.28p 3.00%
Standard Chartered (STAN) 971.00p 2.97%
CRH (CDI) (CRH) 6,494.00p 2.95%
Diageo (DGE) 2,110.00p 2.78%
Glencore (GLEN) 260.60p 2.74%
FTSE 100 - Fallers
Severn Trent (SVT) 2,575.00p -0.43%
United Utilities Group (UU.) 1,063.50p -0.33%
Pershing Square Holdings Ltd NPV (PSH) 3,332.00p 0.00%
RELX FINANCE BV 3.375% GTD NTS 20/03/33 (BW73) 99.72p 0.00%
Imperial Brands (IMB) 2,897.00p 0.03%
British American Tobacco (BATS) 3,157.00p 0.06%
Unilever (ULVR) 4,676.00p 0.11%
SSE (SSE) 1,557.50p 0.26%
National Grid (NG.) 1,015.00p 0.30%
Marks & Spencer Group (MKS) 379.40p 0.45%
FTSE 250 - Risers
Allianz Technology Trust (ATT) 350.00p 5.90%
Moonpig Group (MOON) 225.00p 4.65%
Renishaw (RSW) 2,265.00p 4.14%
Senior (SNR) 126.40p 4.12%
Harbour Energy (HBR) 157.30p 4.03%
Polar Capital Technology Trust (PCT) 283.50p 3.66%
Wizz Air Holdings (WIZZ) 1,430.00p 3.62%
Vistry Group (VTY) 558.60p 3.56%
Pagegroup (PAGE) 249.20p 3.40%
Spectris (SXS) 2,018.00p 3.33%
FTSE 250 - Fallers
Morgan Sindall Group (MGNS) 3,185.00p -3.63%
Bloomsbury Publishing (BMY) 536.00p -3.07%
Bridgepoint Group (Reg S) (BPT) 240.00p -2.20%
Trainline (TRN) 271.00p -1.45%
Syncona Limited NPV (SYNC) 83.00p -1.43%
Safestore Holdings (SAFE) 548.00p -1.26%
Ashmore Group (ASHM) 132.20p -1.12%
Marshalls (MSLH) 247.00p -0.80%
ICG Enterprise Trust (ICGT) 1,154.00p -0.35%
Serco Group (SRP) 159.00p -0.19%
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